International Monetary Fund Revises loans for low-income nations

International Monetary Fund has adopted reforms for a loan programme designed to help low-income countries cope with emergencies caused by events beyond their control.According to a statement issued today by the body, programme aims to provide assistance more quickly, and in larger amounts, to help low-income IMF members, many of them in sub-Saharan Africa, cope with events such as commodity price changes, natural disasters and conflicts and crises in neighboring countries, which disrupt trade.

Statement shows that revamp, approved by executive board on 19 September, also streamlined conditionality, commitments that borrower governments make on their economic and financial policies, attached to Exogenous Shocks Facility. Review of ESF will make it easier and faster for members to receive fund's support has reportedly been accelerated in light of experience and recent worsening of global economic conditions, in particular with recent episode of surging food and fuel prices that have hit low-income countries particularly hard, an IMF spokesman said.
This component could be used on a stand-alone basis or as a first step towards high access component, along lines of current ESF, with access up to 75 percent of quota for each arrangement in normal circumstances. Resources would be provided in multiple disbursements based on reviews. This component could be used following a rapid-access component, or on a stand-alone basis," statement says.
Under rapid access component, member would need only to commit to appropriate policies to address shock, and in exceptional cases, to take targeted up-front measures. It further indicates that programme will be able to be used more flexibly in conjunction with other fund facilities and instruments, for example, with a Policy Support Instrument

Loans are Euro 2,7, But Payments are Regular

Although Montenegrin citizens and businessmen had more than Euro 2, 7 Billion in Loans, data of the Loan Regulatory Bureau of Montenegrin Central Bank (CBCG) suggest that the loan-takers are diligently fulfilling their obligations.

Head of Department for Control of Loan Risks of CBCG, Veselin Vukovic stated that the system of banks and micro-financial institutions (MFI) reveals that total value of loans which are not being serviced regularly (loans which are 60 and more days due) amounts at Euro 54,6 Million.

“This makes only two percent of the total amount of loans. The most significant noted loan is in the group of 60 to 80 days and amounts at 44, 2 percent of the total amount of loans with delayed payments”, Vukovic stated.

Regulatory Bureau for Loans of CBCG started receiving information from the banks in April of 2005. It has been formed to regulate loan risk of banks, as the dominant risk in the banking system of Montenegro. Exchange of data from the registry basis with banks and MFI commenced nine months ago.

“At this point, Registry does not have a role of the true Credit Bureau, as individuals and companies cannot obtain data about their debts with the banking system or with the MFIs. For the time being, there is no possibility for citizens or companies to obtain personal reports as evidence about their debt or credit history. Sector for controls is working on improving the project of Credit Bureau so that the possibility for this service would be considered in the future”, Vukovic has explained.

In its’ loan registry, CBCG is preserving data about the debts since its’ foundation. It also intends to introduce a regulation which would specifically define the time-frame for saving the data on client’s loan history.

“This data-base includes the data on client’s debts based on their use of credit cards, overdraws on their accounts and leasing for 181,621 clients, out of which 175,293 individuals and 6,328 companies.

Total value of this debt is Euro 1, 7 Billion or 63, 57 percent of the total debt”, Vukovic clarified.

Statistic data shows that 97 percent of this debt is in credits, 1, 1 percent is for credit cards, while overdraws on accounts and leasing cleared from banks makes 1, 5 percent and 0, 4 percent of the total debt, respectively. According to the same data, average debt of citizens with banks amounts at Euro 5, 818 for individuals and Euro 281, 211 for companies.

“Credit Registry started collecting data also about debts with MFIs. And, according to the data, 30, 965 citizens and 144 companies are using services of these institutions.

MFIs have cleared total of Euro 67, 1 Million in credits, out of which 98, 5 percent to citizens and 1, 5 percent to companies”, Vukovic stated, adding that the Registry has no data on the debt with the Leasing companies.

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Seek that green light; score yourself a loan

credit crunch" would have eased. But prospective home buyers — including those with stable jobs and decent credit — still confront unusually high hurdles to gain approval on their home-loan applications. People in the mortgage industry are extremely hungry for business. But they're also extremely picky who they lend to. The last thing they want are more foreclosures coming back to haunt them," says Blaine Rickford, president of an independent mortgage firm.

Mortgage officers those who take loan applications and deal with the public prepare files on would-be borrowers. Yet no file is ever approved by a bank unless its underwriters give the green light. You never get to meet the underwriters these loan supervisors are off-limits to borrowers. But mortgage officers talk to them directly and can plead your case if they think you're a good bet," says Rickford, who's worked in the mortgage field since 1978.

Develop a positive rapport with your mortgage lender and you're more likely to reach your home-buying goal, says Leo Berard, charter president of the National Association of Exclusive Buyer Agents (www.naeba.org).

"You don't want to torpedo your chances of owning a home because of some financing glitch. Those who win in the mortgage process take a businesslike approach," Berard says. Educate yourself on the basics of mortgages before you apply.

Many home buyers, and particularly novices, are in the dark about mortgages and how lending works. Because they feel ignorant on the topic, they hesitate to pose important questions.

But as Berard says, the basic concepts of mortgage lending aren't so complex that you can't grasp them in a short period of time. Start with the Internet, taking a look at the "mortgage" entry in Wikipedia (www.wikipedia.org), the free online encyclopedia, and its related links. You can also go to the U.S. Department of Housing and Urban Development's Web site at http://www.hud.gov/.

Also, Berard encourages you to stop by your local library to check out a book or two on the topic, such as "Mortgages for Dummies," co-authored by Ray Brown and Eric Tyson.

SG Expressbank offers promotional loan terms

SG Expressbank has updated the terms and conditions of its Expresso consumer loans. The financing facility now has a promotional interest rate of 9.99% for salary transfer on clients’ accounts at SG Expressbank.
The upper limit is set at BGN 30, 000, no warrantors required.
These special terms on Expresso are valid up until the close of October 2008.

Gambling case fallout remains as Donaghy reports

The league has determined that for the first time in major professional U.S. sports, a referee will walk into prison a convicted felon on a gambling charge related to his employment.

It is an embarrassing day not only for Tim Donaghy, 41, who will report to a minimum-security federal camp in Pensacola, Fla., to start a 15-month sentence, but also for a league with a lucrative global footprint and a system of officiating that has taken a blow.

Donaghy pleaded guilty 13 months ago to felony charges of wire fraud and transmitting wagering tips through interstate commerce. He admitted to betting on NBA games, but neither the league nor federal investigators found evidence he wagered on games he worked.

Donaghy, enduring divorce proceedings and living in Florida this summer with a friend, was sentenced in July. He could be let out after 12 months. Needless to say, this is a difficult time. ... Tim is accepting of his situation," said his attorney, John Lauro. "He understands that he was going to be punished. But he's also looking to rebuilding his life.

National Bank reports theft of laptop with mortgage loan database

National Bank (TSX:NA) says a laptop containing a database of mortgage loans has been stolen from its head office in Montreal.

The bank says the risk of information being used for fraud is minimal but it's taking precautions to inform and protect clients.

National Bank says its mortgage customers should be vigilant and report any unauthorized transactions in their account.

The bank didn't disclose how many client files are in the laptop database or the type of information contained on the machine.

Fed declines comments on AIG loan reports

A U.S. Federal Reserve spokeswoman declined to comment on Tuesday on reports that the central bank could extend a bridge loan of roughly $85 billion dollars to troubled insurer American International Group.
Both CNBC and the New York Times reported that the Fed was arranging a bridge loan for AIG. (Reporting by Mark Felsenthal; Editing by Leslie Adler)

Bad Credit Loans Wash Out Credit Worries

The stint of bad credit in the society is marked actually by the economic and technological boom since this growth drives the demand of more and fresh as well as new products among the people. People go for more buys with the aids of credit cards and like things, which are however, not easy to be repaid by everyone. So, the result comes with bad credit record. So, they can not be blamed for it. And, this has been aptly understood by the lenders today for which they have brought up a unique type of loans, bad credit loans, which help the bad credit holders to take loans for their needs at cheap and affordable rates.

Bad credit loans do not discriminate any one against any thing. Bad credit loans are available for both the kind of people who can pledge collateral for their loans and also for those who can not. Lenders of secured bad credit loans where you are to pledge collateral, give you the loans with cheap rates as your collateral plays the role of security of the lender’s money. Unsecured bad credit loans, on the other hand do not require the borrower to attach any collateral. And, unsecured options of bad credit loans are quite popular among the tenants and homeless people since they can not pledge any property as the collateral.

Hong Kong shares end morning lower on renewed U.S. credit, housing woes UPDATE

Hong Kong shares ended the Friday morning session lower, as the bigger-than-forecast decline in home sales and rising number of jobless citizens in the United States revived fears of the credit crisis.
The National Association of Realtors said existing home sales fell by 2.6 percent in June from a year ago, the lowest in a decade and more than the 1 percent drop economists have expected. That prompted investors to sell U.S. equities overnight.
Adding to the gloom, the Labor Department said the number of workers filing for unemployment benefits rose to 406,000 last week, an increase of 34,000 seasonally adjusted, the highest since the aftermath of the Gulf Coast hurricanes in 2005.

"The subprime credit crisis is far from over," said Jackson Wong, investment manager at Tanrich Securities. "The drop in housing sales is a constant reminder that the problems are still there even after the administrative measures adopted by the U.S. government."

Washington has bailed out the nation's biggest mortgage financiers Fannie Mae and Freddie Mac, giving investors an excuse to hunt for bargain U.S. stocks in the past few days. Wall Street's rally has spilled over to Asian markets, including Hong Kong, with the key index hitting its highest level in five weeks on Wednesday.
The Hang Seng Index lost 446.68 points or 1.9 percent to end the session at 22,641.04.

China Shenhua Energy, the biggest coal producer in the mainland, led the index lower after the government capped thermal coal prices further and tightened supply distribution. The Chinese government also warned it would punish those who are engaged in hoarding and price speculation.
China Shenhua Energy, the biggest coal producer in the mainland, led the index lower after the government capped thermal coal prices further and tightened supply distribution. The Chinese government also warned it would punish those who are engaged in hoarding and price speculation.

Loan For Youths Benefits Malanje Province

Malanje, 07/22- Angola`s Government programme named "Youth Credit" on Tuesday officially reached Malanje city, in a ceremony chaired by the Provincial Governor, Cristovão da Cunha, Angop has learnt.
The launching of the “Youth Credit” culminated with the handing over of USD 45,000 out of the USD 100,000 made available by the Savings and Credit Bank (BPC) for this province.

Under the programme, each group may benefit from USD 5,000 to USD 10,000, having into account the kind of activity.For the first stage, beneficiaries are eight co-operatives of young people initially selected.

Meanwhile, BPC Northern region Director, Ilda Maria Silva, said that her institution will increase from USD 100,000 to 200,000 the amount available for Malanje province, under this Government programme.
On his turn, Governor Cristovão da Cunha said it is an act of responsibility for the beneficiaries and therefore they should meet the demands of this governmental programme.

State credit agency eyes Cebu furniture sector for loan facility

THE Philippine Export-Import Credit Agency (Philexim) announced that default cases on its wholesale lending program remain to be minimal.
“It’s a supervised credit program,” said Alex Ara-bis, Philexim officer-in-charge for accounts management department in the Visayas and Mindanao.
He said a fund or credit management committee evaluates and decides whether a company is qualified to avail itself of a loan.
Among the members of the committee are representatives from the Land Bank of the Philippines and Philexim.
Under Philexim’s Omnibus Revolving Credit Line, an established group of exporters can avail of a maximum of P25 million that will serve as a revolving fund that can be extended to a member-company. Each member can borrow a maximum of P1 million with a monthly interest of two percent, where one percent will go as revenue for the export association and the other one percent to Philexim.
This facility is also available for check re-discounting, international trade fair participation, improvement of workplace and other financial requirements of the exporters.
The Cebu Gifts, Toys and Houseware Manufacturers and Exporters Association (GTH-Cebu) and the Cebu-Fashion Accessories Manufacturers and Exporters (Fame) Foundation have availed themselves of the loan facility.
Arabis said a year after GTH-Cebu applied for the program, it has already generated more than P2 million for the group.
Once the associations can sustain the re-lending program, Philexim will detach itself from the group.
Edward Mendez of the Cebu Software Development Industry Association (Cebusoft) said he will talk to Cebusoft members so they can also benefit from the program.
He said the loan facility would be useful to members that have plans to establish outsourcing companies.
Philexim is also considering the Cebu Furniture Industries Foundation (CFIF) as some of its members have availed themselves of the state agency’s direct loan facility.
Aside from the wholesale lending and the direct loan programs, Philexim also offers guarantees and foreign-sourced financing facilities to industries where foreign exchange may be generated or saved, like the export group.

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Gov’t to Bail Out Credit Delinquents

The government will either write off overdue interest on loans or transfer loans with high interest rates to loans with low interest rates for 460,000 credit delinquents who have failed to repay money borrowed from financial institutions or private lenders, or whose overdue loans amounts less than 10 million won, starting September.

As the government is expected to include credit delinquents with less than 30 million won in overdue loans in its bailout plan from next year, a total of 720,000 credit delinquents will benefit from the government’s rescue plan.

These measures were finalized at the fifth Presidential Council on National Competitiveness presided over by President Lee Myung-bak yesterday.

Under the plan, the government will create a fund amounting to 700 billion won. In the first phase, the government will purchase loans worth less than 10 million won and overdue for more than three months starting September.

Overdue interest fees will be written off and the beneficiaries of the bailout plan will be allowed to repay the loans for up to eight years, depending on their financial capabilities. During the process, they will be registered as those “under credit recovery” at the Korea Federation of Banks. But, if they repay the debt in time for two years, their financial delinquent records will be erased.

Also, the government will help credit delinquents who borrowed money from financial institutions or private lenders and whose credit rating stays between Grade 7 and Grade 10 transfer their loans borrowed at high interest rates to those with low interest rates.

The transfer program will be subject to those who borrowed less than 10 million won from financial institutions or private lenders at an annual interest rate higher than 30 percent and have repaid the money in time. In short, the government will help money borrowers to transfer their loans with high interest rates to loans with low interest rates with its credit recovery fund. Each borrower will face a different interest rate depending on his or her credit rating.

Regardless of the amount of loans, low-income credit delinquents can have their debt maturity lengthened and transfer their loans with high interest rates to those with low interest rates. However, mortgage loan is not subject to the program and low-income credit delinquents who have property to repay the debt cannot be supported by the government.

The government is also expected to allow credit delinquents with less than 30 million won in overdue loans to have their debt maturity lengthened or transfer their loans borrowed at high interest rates to those with low interest rates. In sum, 720,000 people, or 10 percent of 7.2 million whose credit rating stood between Grade 7 and Grade 10 as of late May, will be supported by the bailout program.

Also, the government will prevent collectors from calling or visiting money borrowers from 9 p.m. to 8 a.m. They will not be allowed to send letters of reminder to children of money borrowers.

In the meanwhile, the government’s rescue plan, which writes off overdue interest fees or allows borrowers to transfer to new loans with low interest rates, will bring about a debate regarding moral hazard.

RBI asks banks not to levy excessive rates on credit cards

MUMBAI: Seeking to tighten the leash on credit card issuing banks, the Reserve Bank has asked them not to charge excessive interest rates on personal loans and prescribe a ceiling rate on small advances, a move that will benefit lakhs of card users.

While issuing fresh guidelines for credit card operations, the RBI has also directed the banks not to reject credit card applications of customers without assigning reasons in writing.

The central bank also made it clear that the banks would be liable for misuse of unsolicited cards and “the persons in whose name the card has been issued cannot be held responsible for the same (misuse of credit cards by other persons).''

As regards the interest rates, the RBI said the banks “should prescribe a ceiling rate of interest, including processing and other charges, in respect of small value personal loans and loans of similar nature...the instructions would apply to credit card dues also.''

Although the RBI has not specified the limit of the interest rates that can be charged by the banks issuing credit cards, it had earlier clarified that “the total cost to the borrower, including interest and all other charges levied on a loan, should be justifiable having regard to the total cost incurred by the bank in extending the loan.''

In case the unsolicited card is activated and misused without the consent of the recipient, the RBI said issuing bank will be required to reverse the charges and pay a penalty to which would be twice the amount of the charges reversed.

The central banks issued the guidelines on Wednesday based on a study of credit card operations in the backdrop of complaints received by the RBI and Banking Ombudsmen. - PTI

Crown Castle International Q2 2008 Earnings Call Transcript

Executives

Fiona McKone - Vice President, Finance

Jay Brown - Chief Financial Officer, Senior Vice President

W. Benjamin Moreland - President, Chief Executive Officer, Director

John P. Kelly - Executive Vice Chairman of the Board

Analysts

Richard Prentiss - Raymond James

Jason Armstrong - Goldman Sachs

David Barden - Banc of America Securities

Simon Flannery - Analyst

Michael Rollins - Citigroup

Bret Feldman - Analyst

Analyst for Jonathan Shetalcro - Analyst

Brad Quartz - Analyst

Presentation

Operator

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to the Crown Castle International Corp. second quarter 2008 earnings conference. (Operator Instructions) I would now like to turn the conference over to Miss Fiona McKone, VP of Finance. Please go ahead, Madam.

Fiona McKone

Thank you. Good morning, everyone and thank you for joining us as we review our second quarter 2008 results. With me on the call this morning are Ben Moreland, Crown Castle's CEO; Jay Brown, Crown Castle's CFO; and John Kelly, Crown Castle's Executive Vice Chairman.

This conference call will contain forward-looking statements and information based on management’s current expectations. Although the company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurances that such expectations will prove to have been correct.

Such forward-looking statements are subject to certain risks, uncertainties, and assumptions. Information about the potential factors that could affect the company’s financial results are available in the press release and in the risk factors sections of the company’s filings with the SEC.

Should one or more of these or other risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected.

In addition, today’s call includes discussion of certain non-GAAP financial measures, including adjusted EBITDA, recurring cash flow, and recurring cash flow per share. Tables reconciling such non-GAAP financial measures are available under the investors section of the company’s website at crowncastle.com.

With that, I will turn the call over to Jay.

Jay Brown

Thanks, Fiona and good morning, everyone. As you’ve seen in the press release, we reported another excellent quarter of results. During the second quarter, we generated revenues of $379.5 million. Site rental revenue increased $26.2 million to $348.5 million, or up approximately 8% from the second quarter 2007, in line with our target. Substantially all of this growth was achieved organically across the assets that we owned as of the second quarter 2007.

Service revenue was $31 million, up approximately 50% from the same period last year. Gross margin was site revenue rental defined as tower revenues less the cost of operations was $234.8 million, an increase of $24.6 million, or up 12% from $210 million for the second quarter 2007.

Adjusted EBITDA for the second quarter 2008 was $213 million, an increase of $26.6 million, or up 14% from the second quarter 2007, ahead of our expectation. As a result of diligently managing our direct tower expenses in G&A, in the second quarter we were able to convert 100% of our year-over-year growth in site rental revenue into adjusted EBITDA.

Recurring cash flow defined as adjusted EBITDA less interest expense, less sustaining capital expenditures increased 31% to $119.2 million from $90.9 million in the second quarter 2007.

We significantly exceeded our targeted annual growth rate of 20% to 25% growth in recurring cash flow per share by achieving 34% growth from the second quarter of 2007. Our continued strategy of investing cash to maximize long-term cash flow per share, coupled with the strong operating performance of our towers has enabled us to deliver results above our target. I believe our operating results demonstrate our ability to consistently growth revenues and cash flow even in challenging economic times.

During the quarter, capital expenditures were $140.7 million. Sustaining capital expenditures totaled approximately $5 million. Revenue generating capital expenditures were $135.7 million. This was comprised of $73.5 million for land purchases, $18.4 million of CapEx for revenue enhancing activities on existing sites, and $43.8 million on the acquisition and construction of new sites.

Turning to the balance sheet as of June 30, 2008, at quarter end we had approximately $98.8 million of cash, excluding restricted cash. Total debt to adjusted EBITDA as of June 30, 2008 was 7.2 times, and interest coverage, or adjusted EBITDA to interest expense was 2.4 times. Securitized tower revenue notes totaled $5.3 billion and other debt totaled approximately $856 million, for total debt at the end of the quarter of $6.1 billion. The other debt was comprised of $792 million under our corporate credit facility, and $63.7 million of our 4% convertible notes. We also had $314.3 million of our 6.25 convertible preferred stock outstanding as of June 30, 2008. Lastly, we had $100 million of availability under our revolving credit facility

Regulation Day

Regulators were circling the financial sector Thursday, homing in on what they regard as some of the unbridled behavior that has marked credit and commodity markets.

In pointed action, New York Attorney General Andrew Cuomo announced that he has sued two units of Swiss banking giant UBS for allegedly misrepresenting auction-rate securities to clients as safe and liquid investments. The market for auction-rate securities allowed municipalities, charitable institutions, student-loan companies and mutual-fund companies to borrow money for long periods of time at short-term interest rates through auctions that reset the interest rate every week or month. In February, the $330 ..

Housing bill most likely to benefit builders, nonprofits

WASHINGTON – The Senate is poised to approve a massive housing bill today that may rescue some troubled homeowners in North Texas but is most likely to benefit homebuilders and nonprofit groups that may scoop up foreclosed homes.

The $25 billion bill is the product of months of intense lobbying and compromise and was driven by lawmakers and business interests hardest hit by foreclosures and bad loans.

Still, it's not expected to be a cure-all for the housing market, even for North Texas' big homebuilders, whose losses each quarter are now at or near $1 billion.

"It's helpful, but I don't think it's a silver bullet, either," said Timothy Eller, chief executive of Dallas-based Centex, the country's third-largest homebuilder. "There may be more that needs to be done or that Congress wants to do."

The housing plan gained urgency in recent weeks, as fears grew about the ability of mortgage giants Fannie Mae and Freddie Mac to survive a huge number of borrower defaults.

The bill allows the Treasury Department to offer an unlimited line of credit to the government-sponsored enterprises should they need big doses of new capital.

But the bill also is loaded with targeted measures.

Homebuilders such as Centex and D.R. Horton of Fort Worth would benefit from a $7,500 federal tax credit for first-time buyers, helping clear excess inventory.

In higher-cost markets outside Texas, the homebuilders should benefit from an increase in the size of loans that may be guaranteed by the Federal Housing Administration.

The FHA has already increased its loan volume as lenders stopped offering subprime loans and other exotic mortgages.

Its portfolio would swell even more under the new law, as the agency could insure up to $300 billion in refinanced loans, many originally made to subprime borrowers who are facing sharp interest-rate adjustments.

To offset the risk posed by so many new mortgages, Congress would eliminate a popular FHA program that flourished in Texas over the past six years. It allowed FHA borrowers to get a down payment donation from a nonprofit, which recouped its contribution from the home seller.

Such loans have much higher default rates than other FHA loans, according to the Department of Housing and Urban Development.

The program grew so popular that J.P. Morgan said in a research note that its elimination meant "the overall bill could result in more harm than good near term" for homebuilders.

Prohibition "is going to have a negative effect absolutely," said Scott Norman, interim executive director of the Texas Association of Builders.

Although Texas hasn't suffered as many foreclosures as coastal and Midwestern states, the bill would send almost $170 million to the state via grants that could be used to buy foreclosed properties.

Texas would channel the money into cities and urban counties that could award the grants to organizations that would buy foreclosed homes and rehabilitate them.

The plan is meant to minimize the impact of widespread foreclosures on local property values.

Under the Senate formula, the Dallas-Fort Worth area would get about $54.3 million, according to data prepared by the Center for American Progress, a liberal think tank. The money could buy and rehabilitate about 16,116 foreclosed properties, according to the center.

Most North Texas lawmakers have voted against the bill, saying it would bail out unscrupulous lenders and borrowers.

Republicans such as Rep. Pete Sessions of Dallas said they objected to a new affordable-housing trust fund that could dole out money to politically active charities.

Texas Sen. John Cornyn said Friday that he's likely to vote against the bill.

A spokesman for Sen. Kay Bailey Hutchison said she hasn't decided how to vote.

Mr. Cornyn and Ms. Hutchison voted for a previous version of the bill in April that contained a provision that would have allowed businesses to get tax refunds by applying current losses to previous, profitable years. Big homebuilders such as D.R. Horton and Centex lobbied for the provision.

The so-called loss-carryback measure was dropped from the bill after it was rejected by the House.

Mr. Cornyn said the bill has grown more expensive since April, when it was scored to cost about $10 billion.

Build good credit, then house hunt

The rate and terms you get on a mortgage will depend largely on three factors: your FICO credit scores, your down payment and your income.
To improve your credit scores, you need to get -- and use -- credit. Credit cards are a good way to build your credit history and your scores. So are installment loans, such as auto loans and personal loans.
If you don't currently have a credit card or a loan, apply for a secured card. You can find good ones at CardRatings.com or Bankrate.com. To get a secured card, you make a deposit at the issuing bank (typically $200 to $1,000) and in return get an account with a line of credit in the same amount.
You'll want to use the card lightly but regularly, and pay your bill on time and in full every month. Don't use more than about 30% of your credit line at any given time, and don't believe the myth that you need to carry a balance to improve your credit. That's hogwash.
Choose a credit card that reports to all three credit bureaus and that converts to a regular, unsecured credit card after 12 to 18 months of on-time payments.
After several months of using and paying off the card in full to build a credit history, consider getting a small personal loan from your local credit union and paying that off.
Also, consider signing up for a credit monitoring service that gives you access to your FICO scores. (Some credit monitoring services offer other types of credit scores, but you'll want to look at your FICOs, since those are the same scores the lenders will be using.) That way you can monitor your improvement over time.

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Group Reports Rise In Bank Card Delinquencies, Late Payments On Credit Cards

Washington, D.C. (AHN) - Home equity credit line delinquencies hit an 11-year high in the first three months of 2008, the American Bankers Association said.

The increase in delinquencies was the result of a combination of several factors such as declining home equity and stock values, unemployment, soaring food, fuel and energy bills and slow income growth. As a result Americans struggled with which bills to give priority.

ABA said bank card delinquencies reached 4.51 percent in the first quarter of the year, up by 0.13 percent from the previous quarter. An increase in late payments on credit cards was also noticed by the ABA. The number of card accounts overdue by 30 days grew to 3.11 percent in the first quarter compared to 3.04 percent in the 4th quarter of 2007.

The recent tax stimulus checks boosted personal income, but the increases were eaten away by high gas and food prices, James Chessen, chief economist of the ABA, said in a statement.

Consumers can get free credit score, report as part of settlement

Consumers can find out their credit score and get a credit report at no charge under terms of a recently settled class action suit involving TransUnion, one of the country's three major credit reporting agencies.

Anyone who has ever had a credit report on file with TransUnion between Jan. 1, 1987, and May 28, 2008, is eligible to receive this benefit as part of getting free credit monitoring.

This means anyone who had a credit card account or loan open during this time is eligible. That could be more than 160 million Americans.

Under terms of the settlement, eligible consumers will be able to select either a free six-month credit monitoring service that TransUnion normally sells for $59.75 or a nine-month enhanced credit monitoring service that costs $115.50.

It is believed to be the country's largest class-action settlement in terms of the number of people that are covered, said Ken McEldowney, executive director of San Francisco-based Consumer Action.

Federal law makes it possible for consumers to obtain a copy of their credit report once a year at no charge from each of the country's three largest credit reporting agencies, Equifax, Experian and TransUnion. This is done by visiting www.annualcreditreport.com or calling (877) 322-8228. However, the law does not entitle consumers to a free credit score.

Able to Freeze Credit Reports

Consumers gained an additional weapon in the battle against identity theft when Virginia’s new security freeze law went into effect on July 1, 2008.

According to the Virginia Department of Agriculture and Consumer Services’ Office of Consumer Affairs, Virginia Code Sections 59.1-444.1-444.2 authorizes individuals to restrict access to their credit reports and lock out anyone seeking to open an account or fraudulently establish new credit in their name. If a consumer has placed a freeze on his credit report, a credit reporting agency is prohibited from releasing the credit report, or any information in it, without the consumer's specific authorization.

Starting Tuesday, Virginia residents wishing to place a freeze on their credit files may do so by sending a request and paying a $10 fee to each of the three major credit reporting agencies. No fees will be charged to victims of identity theft who submit a valid police report with their freeze request. Once the freeze is in place, the consumer will receive a personal identification number from the credit reporting agency. The PIN can then be used to remove the freeze on a temporary or permanent basis.

Although placing a security freeze on a credit report is an effective tool to combat the effects of identity theft, OCA cautions consumers that they will need to plan ahead to ensure timely processing of their legitimate credit applications. It may take the credit reporting agencies up to three business days to lift the security freeze and allow the processing of valid credit requests for items such as mortgages, credit cards, wireless phones, vehicle loans, rental housing and utilities authorizations.

Consumers should also be aware that certain creditors, prospective employers, law enforcement, child support agencies, tax authorities and other government agencies may continue to access credit reports for legitimate reasons even though the credit reports may have a security freeze in place.

To learn more about placing a security freeze on your credit report, contact each credit reporting agency separately at the links below.

CreditScoreQuick.com

CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, fico score, free credit check, identity theft protection, secured credit cards, student credit cards , credit cards, mortgage loans, auto loans, insurance, debt consolidation ,and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

Credit report data: don't take their word for it

Since the last two big economic downturns in the UK (the industry-led Thatcher recession of 1979/81 and the consumer-led exchange rate mechanism recession of the early nineties) the stable, relatively calm economic waters have been good to UK credit managers.

Due largely to the computerisation of bulk credit data in the nineties, the barriers of entry into the credit information market have come down, and as a result, credit managers have more choice of agencies at far lower prices.

Some agencies offer very low prices based on the regurgitation of public record data from the Company Registration Office (CRO) with an appended credit rating. And in the prevailing calm conditions in the last 15 years, whatever agency was selected, the predictive qualities of credit reports were perceived by the market as ‘much of a muchness’.

The predictive quality of credit reports didn’t even seem to be affected by the deterioration in the quality of financials filed at Companies House.

As I write, 85% of accounts at CRO are abbreviated and unaudited. To make matters worse, criminals have read the disclaimer on the CRO website saying that accounts lodged there are received ‘in good faith’ and are not validated or verified, and have bombarded Companies House with fictitious documents in order to perpetrate frauds.

The new breed of credit manager has been brought up on this diet, and many have no appreciation of what past generations of credit managers saw in their credit reports, unless of course they continue to use the services of traditional agencies such as Dun & Bradstreet, Graydon and Experian who still add trade payment data, edit trade magazines, and interview companies to add value to their products.

In turbulent times, a credit report must surely be more than a revamped Companies House image document with an automatic rating attached? The low-cost, no added value credit report has bloomed in ‘fairweather’ conditions over re cent years, but will it do the job in bleaker conditions like the ones we are facing now?

NextAdvisor.com Launches "Equifax Credit Report Guide"

It's so important for everyone to understand their credit report and FICO score," said NextAdvisor.com's Associate Editor, Caitlin Podiak. "Equifax is unique in that they are the only credit reporting agency that offers a three bureau credit report, a FICO score and a FICO score simulator. Our Equifax credit report guide should help consumers interpret this useful information."

The guide walks through each section of an Equifax credit report and explains its purpose in clear, straight-forward language. It also educates consumers on how to identify potential errors on their credit report and dispute credit report inaccuracies with Equifax.

NextAdvisor.com has already published an Experian credit report guide and plans on publishing a TransUnion credit report guide later this month.

The company has also published informative user guides focused on child identity theft protection and preventing identity theft on popular social networking sites Facebook and MySpace. Those guides may be found here: http://www.nextadvisor.com/blog/category/nextadvisor-guides/

About NextAdvisor.com:
NextAdvisor.com is the trusted, independent source for comparing the most valuable new services. The company's mission is to help consumers save money and improve their lives by presenting them with useful comparisons and reviews of service providers along with a clear explanation of each service and how it works.

Credit Repair

You may have bad credit due to some irresponsible moves or some unforeseen events in your life. Protecting your credit score could prove to be very important to your future. There are lots of ways to keep your credit good, but if it’s already looking pretty bad, consider some repair options. One way is to go through a credit repair organization.

If you think you should use a credit repair company to fix your credit problems, you should educate yourself first. Credit repair companies can make a lot of promises, but be careful who you give your information to. There is a lot of deception going on in this industry and there are a few signs that you should look out for.

First, if they ask you for any money up front, then it isn’t a legitimate or ethical company. The Credit Repair Organizations Act says that companies aren’t allowed to ask you for any money until everything that they have promised has been completed. So this should be something that you are mindful of.

Secondly, they should always inform you of your legal rights and the steps that you can take yourself to repair your credit. Crazy promises to remove all bad things from your credit should be ignored. No one can do this. You can investigate your credit files to dispute any inaccurate or incomplete information, but you can’t make negative information just vanish. If a credit repair organization tells you not to contact a credit reporting agency yourself, you should probably hang up the phone and do just that. Anything that a credit repair company can do for you, you can actually do for yourself, for free. Research a little online and find out what your rights are under the Fair Credit Reporting Act.

The Credit Repair Organizations Act is in place to protect you. If you decide to go with a credit repair company, then you should familiarize yourself with the basics of this act before you proceed. We’ve mentioned that they can’t charge you until they’ve completed everything that they’ve promised, but you should also know that they must provide you with payment terms for their services. They must inform you of all fees and a final total amount that will be due. They must give you a detailed description in writing of everything that they plan to do. They have to give you a timeline in which the process will be completed. Any guarantees must be in writing and included in the contract. The company’s name and address must also be included on the contract.

Before you sign anything, they must provide you with a copy of the Consumer Credit File Rights Under State and Federal Law. They can’t start working on your credit until they have a signed contract in hand and have completed a three day waiting period. Anytime during the waiting period you have the right to change your mind and cancel the contract, owing nothing. Keep your rights in mind throughout the process and educate yourself before you start. Remember, anything they can do for your credit score, you can do yourself for free.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, Internet identity theft software, secure credit cards, and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

What's My Credit Score

If you’re applying for a loan or credit card, your credit score could have an impact on your interest rate and loan term. So what is your credit score and what does it mean? What does it say about you? Credit scoring is how creditors or lenders assess their risk when lending money to you. They look at your score and it indicates to them how financially responsible you have been in the past.

Your credit worthiness is calculated by credit scoring agencies and bureaus. You should get a copy of your credit score at least once a year and make sure that there are no mistakes or omissions in it. You can get this information for very little money and sometimes for free. Your actual score will be between 300 and 900. Higher scores are much better and can get you great interest rates, longer pay-off periods or terms, lower fees and less paperwork in the application process. Low scoring applicants are usually rejected all together or they are offered high interest rates, high minimum payments and more fees. Sometimes low scoring applicants are accepted based on their employment history or other factors, but generally aren’t as trustworthy as their higher scoring counterparts.

Is your score a good score? 650 or higher is a very good score and will generally earn you the very best terms when applying for loans. If there are a few minor problems with your credit history, such as a couple of late payments in the last few years, then you can score between 620 and 650, which is still a good score. You may run into a few problems with this score, but generally it is still pretty good. You’ll probably end up with slightly higher interest rates than people with excellent credit. Scoring under 620 puts you into a risky category. You may still be approved for a loan, but it will be at the highest interest rates and you may be considered a big risk to lenders.

Things that affect your credit score include your borrowed money payment history, late payments and missed payments. Late and missed payments on a credit card or loan are very big considerations when calculating your credit score. You should try to never make a late payment because it blemishes your record for years. Another thing considered when figuring your credit score is your debt to income ratio. If your level of debt is very high relative to your income, or if the cards you have are close to their spending limits, then your score will probably go down.

If your credit history is very long and you’ve had revolving credit for years, then your score may drop. Trouble paying things off completely makes you look like you are in over your head, or you’re just not trying to pay off your debts. Inquiries on your credit are another thing that is looked at. If you’re constantly applying for credit cards and loans, regardless of your acceptance or use of the instrument, then you look like someone who can’t afford the things that you’re trying desperately to get. Do your research before choosing a loan or credit card to apply for. Multiple inquiries on your credit can hurt you in the long run. Your credit score ultimately depends on you.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, Internet identity theft software, secure credit cards, and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

A Good Credit Score is Within Your Reach

What does your credit score include? When you are establishing your credit, you may wonder what the credit agencies are actually looking for. Generally, they start out with your name, social security number, employers, current and past addresses, and your marital status. When someone gets your credit report, it includes things like when you make payments to your utility bills. Paying a bill late can stay on your credit history for years. Things that you might not imagine would affect your score can be heavily weighted when determining how high of a risk you are. They look at whether you own or rent, how long you have lived at the same address, what your occupation is and how many years you have you been at your current job.

Good credit gives lenders the idea that you are a low-risk person who manages their credit and finances wisely. When you establish a good credit history, you will enjoy lower interest rates, lower minimum payments, less paperwork and more lending options. Poor decisions can lead to years of paying higher minimums and higher interest, forcing you to hold your balances for longer and longer. You can be denied jobs, car loans, and pay auto insurance rates over 200% higher than someone with a high rating. Those who manage their credit well enjoy lower limits, more freedom of which instruments they choose and can pay off balances more quickly. In general, having good credit saves you money and can get you the kind of help that you need when you need it.

Lenders look at your financial situation as well when determining your credit worthiness. They will see how many credit cards and loans you have, if you have made any late payments and how many years have you had a credit history. Eight or more years of credit history is preferred, so get started as early in your life as possible. Don’t let your debt add up to over 15% of your income. It’s a good idea not to let your balance get up to 50% of your available credit on credit cards.

Keep the number of inquiries on your credit low. You should take a look at your own credit report once a year to make sure there are not any mistakes on it. One inquiry does not hurt you, but multiple inquiries can significantly impact your score. Even two inquiries can lower your score by around eight points.

Building good credit takes time, effort and maybe some sacrifices. Start early building your net worth. Having a checking and a savings account earns you a score four times higher in that scoring area than a checking account alone. Set up an automatic savings plan, no matter how small of an amount is being contributed. Take advantage and invest heavily in your employer’s retirement plan. All of these things show your responsibility.

Pay your credit cards before the due date and always pay more than the minimum. Pay your bills on-time, every time. If you realize that you are going to have to pay a bill late, don’t settle on paying a late fee and forgetting about it. That one late payment will be on your credit report for a long time. Take everything that has to do with your bank account and bills seriously.
If you need some help with your score, investing in secured credit cards can help establish a better credit score when you pay it off on-time for many consecutive months. The bottom line is to be responsible, and your score will reflect your efforts.

About the Author: Mike Clover is the owner of http://www.creditscorequick.com/. CreditScoreQuick.com is the one of the most unique on-line resources for free credit score report, Internet identity theft software, secure credit cards, and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.

Advantages of a High Credit Score

Everyone seems to realize that having a high credit score is great, but there are even more advantages than most people know. Qualifying for loans tends to be the advantage that most people focus on, but discovering the other advantages might really ignite an interest to work toward a higher score.

Yes, loan eligibility is an amazing credit score benefit, but getting lower interest rates on those loans is even more important. The better interest rates you qualify for put money directly back into your own pocket. This goes for rates on other services as well. Having a low credit score can actually add one to two points to a motor vehicle insurance premium. Why is this related? Your ability to make responsible payments is also important to insurance agencies, credit card companies, cell phone providers, and more. Maintaining a great score will help you to save money in all of these areas.

If you are an owner of a small business, getting a line of credit or small-business loan may be imperative to your success. If a business is less than three years old, personal credit plays a huge factor in your eligibility and interest rates. At this stage of small business, lenders have trouble making a distinction between your business credit history and your private credit score.

If you are not a business owner and work better in a job atmosphere, there are even rewards in the job market. Many professional employers actual do a credit check before a new hire. These high level employers consider your credit score a representation of your responsible behavior. An employee that has difficulty managing their own finances might not be the best person to take care of company needs. This is especially true for employment in fields that are especially tied to financial practices such as banks, accounting firms, and treasuries.

The biggest advantage to a high credit score is the buying power you will possess. The possibilities for investment and rates on large purchases are much better. You will spend less on a new car, be able to make a big investment in a growing real estate market, or get the loans you need to send your children to the best college. The opportunities are almost limitless when credit is handled well. If you don’t have a great score right now, it is never to late to get started on your way to rebuilding it or building it up for the first time. There are a number of helpful online sources to assist you. Start by getting a free credit score report from an online provider.

Search 100s of Loans! Compare 100s of loans with one quick and easy search. www.accepted.co.uk

Credit UK households

The credit crunch could start to affect British consumers, warns the Ernst & Young Item Club.

In a special report, the economic research body claims UK GDP could fall by one per cent because of the credit crunch.

"It is hard to forecast the ultimate impact of the recent volatility. However a worst case scenario of a full-blown credit crunch scenario would reduce UK GDP growth by around one per cent in 2008 and 2009," said Peter Spencer, chief economic advisor to the Item Club.

"For the Eurozone the impact would be lighter whilst for the US it could be as high as a 1.5 per cent reduction."

The report sees "worrying signs" that turmoil from the financial markets - as banks become more cautious about lending to each other - could spill over onto the high street and the housing market.

Item finds a slowdown in the property market is possible as homeowners coming off fixed rate mortgage deals face higher rates.

"Two million UK fixed rate borrowers also face a crunch of their own when their cheap fixed rate mortgages expire towards the end of this year. When they do they are likely to see far more stringent conditions around the conditions that UK lenders offer as well uplift in the monthly cost," the report states.

The body is now calling on the Bank of England to act as "nursemaid" to prevent the credit crunch from spreading.

It finds that a full crisis is still some way off but "more 'nursemaiding' by central banks" may still be necessary to "ward off the threat to growth from the current financial market volatility".

The effects of the US sub-prime crisis have already been seen this week in the UK with mortgage rates increasing, a minor lender going into administration, and Northern Rock calling on the Bank of England for emergency help.

Freeze Your Credit Report in online

It's finally coming: On October 15th, you'll be able to lock up your credit file and protect yourself from ID theft ...Well, almost.

Equifax has just announced that it will join Trans Union in allowing you to place a freeze on your credit report. This will make it impossible for thieves to open up a new credit card, or take out a loan in your name. Equifax and Trans Union will each charge $10 a year to lock your credit file. This is valid in all 50 states.

Expect to pay another fee fee to temporarily “unlock” it, if you need a loan, or plan to buy a car, for instance.

One big problem in all this: Experian, the 3rd credit bureau, is not offering freezes at this point: Consumers Union says thats like locking your front door but leaving the back door open (From www.wcpo.com).

Cen more sale collapses due to credit squeeze

Yet another large property-related deal has succumbed to the crisis in financial markets with the collapse of the 300 mln stg sale of Kenmore, a Scottish property company, according to the Financial Times.

The report said the Edinburgh-based company had been in takeover talks since May with Mirvac, a listed Australian group. But discussions have broken down amid the credit squeeze that has derailed several other property-related transactions.

A source told the FT that Mirvac had lost its appetite for the deal at the asking price, given the state of the debt and property markets. Yields in parts of the commercial property market are rising, partly as a result of higher interest rates compared with a year ago.

What is a credit report learn from hear

Credit report is made by credit bureau that includes the information about your credit history. Your credit report includes your identification information, your credit account details, your bankruptcies and your payment related details like you make your due payments on time or not.

So this credit report of you is being used by various credit lenders with your permission to know about your creditworthiness.

How to get duplicate copy for your credit report

Are you willing to take a new loan or want to go for a new credit card? But before this do not forget to make sure that you have your exact credit report to get the exact stats. So here I am mentioning some easy ways by which you can get your free credit report:

Make phone calls to credit reporting bureaus
Three big credit-reporting bureaus namely Equifax, Experian and TransUnion provide us our free credit report once a year. So search Internet to get their respective phone numbers and call them to get your free credit report.

Get your credit report by mail
When you search Internet for big three credit reporting bureaus, try to get a mail address for all of these bureaus. Write a letter to them with your basic information for getting your free credit report. This process is a bit slower than the first one of getting credit report by phone.

Get free credit report online
Going online is the quickest way to get free credit report. Search Internet and find a website that combines these credit reporting bureaus in to one. Once you get such a site, you can easily get your free credit report and also keep a print of it for future use.

How to get duplicate copy for your credit report

Are you willing to take a new loan or want to go for a new credit card? But before this do not forget to make sure that you have your exact credit report to get the exact stats. So here I am mentioning some easy ways by which you can get your free credit report:
Make phone calls to credit reporting bureaus
Three big credit-reporting bureaus namely Equifax, Experian and TransUnion provide us our free credit report once a year. So search Internet to get their respective phone numbers and call them to get your free credit report.

Get your credit report by mail
When you search Internet for big three credit reporting bureaus, try to get a mail address for all of these bureaus. Write a letter to them with your basic information for getting your free credit report. This process is a bit slower than the first one of getting credit report by phone.

Get free credit report online
Going online is the quickest way to get free credit report. Search Internet and find a website that combines these credit reporting bureaus in to one. Once you get such a site, you can easily get your free credit report and also keep a print of it for future use.

People who qualify in free credit report

If you are willing to get your credit report from credit bureaus, you may have to pay $15 per bureau. There are many companies advertising about providing credit report at very low rate. But the great idea is why to pay when you can get your credit report free of cost.

According to the laws, each consumer is provided a free credit report each year. Although consumers have to pay some bucks to check their credit score. There are many people who do not prefer to review their credit report.

If you think that your credit report contains errors, then you have a great chance to get a free credit report from all of the three bureaus. People who have been denied credit, employment or insurance because of their negative credit rating will also qualify for a free credit report.

You can check your free credit report at credit report official site annualcreditreport.com.

Do you know what's lurking inside-2

"It goes to character," Jaggernath explained.

In Nanaimo, credit counsellor Kyle Peters says he's often surprised at how little people know about managing debt and how it affects credit scores.

"I think that there's just so many factors that influence your credit rating," he said. "People don't really realize what factors are more influential over others. It's not really clear to the public."

A credit score is a number between 300 and 900.

"Bigger is better," said Jaggernath. "If your number is 700, that means 700 out of 900 people are likely to pay their debt.

"Most lenders don't like to see anything under 680."

The Financial Consumer Agency says the credit report is the first place to look for signs of identity theft.

Bad credit doesn't come from being a couple of days overdue on a payment, though paying on time is the best way to keep a good credit

rating.

"You usually have to miss an entire billing cycle before it hits," Jaggernath said.

Having too much credit raises a red flag to lenders as well, she said.

Since cell phone companies report overdue payments to credit bureaus, teens can fall into bad credit early on.

"With a 19-year-old, it's the fastest way to build credit and the fastest way to wreck it if you don't pay your bill."

The good news for credit holders is everyone's slate is wiped clean after six years.

"If people focus on not having too much credit, using it responsibly and paying it in full and not carrying balances all the time, chances are their credit is going to be OK," Jaggernath said.

MTropea@nanaimodailynews.com

250-729-4255

- --

Seek help if you:

- Have no spending plan or budget in place

- Use credit to pay for most purchases

- Use credit to pay for credit

- Spend more than your income

- Don't pay your bills on time

- Have little or no savings

- Receive letters or phone calls from collectors

- Withhold spending information from your partner

Do you know what's lurking inside-1

Half of Canadians don't know what contributes to their credit rating, a new survey has found

Unlike most of her friends, Nanaimo's Jesslyn Gosling is holding off on getting a credit card.

"I don't manage my money very well," admits the 22-year-old.

"If I don't have a credit card then I won't spend."

In today's credit-hungry society, where many people are packing their wallets with two or more credit cards, Gosling may be somewhat of an anomaly. But she won't be for long.

Gosling plans on applying for one "pretty soon" to build up her credit history.

That may mean easier buying power but Gosling and her friend Emma Maddock acknowledge they don't know exactly what goes into credit records after they swipe the almighty credit card.

They're not alone.

A recent Financial Consumer Agency Survey revealed that half of Canadians are unaware of the factors that contribute to an individual's credit rating, and only 15% have requested a credit report.

A credit score is a numerical rating based on the contents of a credit report.

To Julie Jaggernath, of the Credit Counselling Society, it's a "snapshot" of a person's debt history and more important today than ever before.

"It affects everything," she said, noting everything from mortgages, car loans to being able to rent an apartment are dependent on a person's credit history.

Some employers will even run a credit check on applicants to see how they manage money.

Free Website Offers a Look at Credit Reports-2

House taught the IDA program class, a non-profit organization, to low-income families. She also stated that Utah is known for some of the biggest houses in the United States and the most cars per household.

The AAA Fair Credit Foundation works with other non-profit organizations from United Way to Utah Saves.

Sometimes there are inaccuracies on personal credit reports. Checking one's credit report is important to make sure everything is accurate.

"Someone [might] have a similar name, and identity theft is big now," said Jacobberger. "You just want to check it to see where you're at."

If there is an inaccuracy on your credit report, there are a few different ways of resolving them.

"You can write a dispute letter, either you can go to the Web site [Annual Credit Report] or you can actually write a dispute letter on your own," said Jacobberger. "In 30 days, they need to look into it and get back to you. The AAA Fair Credit Foundation has an example of a dispute letter on their Consumer Cent Web site.

"It's fairly common to see something incorrect on there," said Jacobberger. People write dispute letters frequently, according to Jacobberger, one out of three people will have something incorrect on their credit report.

To avoid inaccuracies and promote store credit, Jacobberger offered advice to students. People should avoid store credit cards, because they usually charges higher interest rates.

"My suggestion is that you want one or two [credit cards], said Jacobberger. "Make sure it has a low balance and you pay it off in full each month. " Make sure that charges and payments are reported on the credit bureau when paid in full each month.

"Find out when they report to the credit bureau and when they report when you pay it off," said Jacobberger. "That way, it doesn't just show a zero-zero balance."

Payment history is 35 percent of your credit score and 30 percent is based on different types of credit a person has. If a person can't get a credit card, they can go to their bank to get a secured credit card. A secured credit card is where a person puts money onto the card before hand.

"Your credit score can always improve," said Jacobberger.

Classes are available at the AAA Fair Credit Foundation once a month to people who want more knowledge about checking accounts, setting financial goals, identity theft and budgeting. Planning a brighter future is important.

"In the long run, [you] want to have a low debt to income ratio, you want to make payments on time and to really have two credit credits at the most," said Jacobberger. "Make sure you have enough money to live within your means."

Free Website Offers a Look at Credit Reports-1

Students need good credit to get a good rate on student loans or to pay for necessary expenses. Students can now check their credit report to see just what is going on with their credit.
The site has three consumer reporting companies which are: Equifax, Experian and TransUnion. These companies will allow people to check their credit report once every 12 months.
They can actually view their credit report for free," said Deborah Jacobberger, financial education counselor at the AAA Fair Credit Foundation.

"If they want to see their credit score, it costs $7-10."

The AAA Fair Credit Foundation is a non-profit organization that will help anyone with free financial education.

"Anyone can come here to ask for help," said Jacobberger. "We'll walk someone through a budget, [their] basic expenses, [their] debt and [help] them figure out how to pay it off the best way. We also counsel people on their credit."

Having a good credit report is really important when applying for future mortgage loans, car loans and/or applying for a credit card.

"Mortgage fraud is definitely high in Utah," said Jacobberger. "You have to be careful.

"It affects your day-to-day life [with inaccuracies on your credit report]."

Utah is ranked as the fourth largest state in the amount of debt per capita.

"Utah has a lot of bankruptcies," said Ann House, extension professor with Utah State University. "We have low income and an average to high-cost living. Our wages are very, very low."

Credit report disputes

John Merris has an above-average credit score. But he felt it was worth taking time and effort to make it even better.
"Although my credit report and score are both good, the credit-reporting agency informed me that my score would be even higher if I had a credit card history," the Shrewsbury, N.J., man explained.
Merris was confused, because he has been using credit cards for more than two decades.
So, I gathered all the information regarding the three credit cards I have had for the past 20 years. I sent the credit reporting agency a letter listing the three cards, the dates I had them and the addresses where I send payments each month.
"About 2 weeks later, I got a letter from the credit-reporting agency. It stated that I personally cannot submit such information about my credit cards. Rather, the information must come from my creditors. Therefore, all my detective work was for nil because the credit-reporting agency would not accept my information."
It's no wonder consumers get frustrated with credit-reporting agencies. Although federal law gives consumers the right to dispute inaccurate information in their files, it doesn't guarantee them the right to add information about missing accounts.
As Steven Katz, a spokesman for Trans Union explained, "Consumers cannot dispute an item that does not exist on their credit report."
All consumers can do is appeal to the creditor. Start by contacting the creditor and asking if it regularly reports to the credit bureau in question. Although many companies report to all three credit bureaus, some report to only one or two.
"It's possible that some lenders may not have a reporting relationship with a specific bureau," Katz explained. As a result, your credit report and credit score can vary significantly from one credit reporting agency to another.
If the creditor does report to the bureau in question, the consumer can ask the company to make sure the item is being properly reported.
Asa Aarons is a consumer reporter who appears on News 4 You at 5:30 p.m. weekdays on WNBC-TV, Channel 4. His special Daily News column appears Mondays, Tuesdays, Thursdays and Fridays. Send your questions to: Ask Asa, P.O. Box 3310, New York, N.Y. 10116, or you can e-mail him at AskAsa@gmail.com. Questions can be answered only through this column